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Judgment
V.K. Sharma, J.—This is an application u/s 9 of the Arbitration and Conciliation Act, 1996 (in short ''the Act'') for grant of interim measures as under:
(a) Interim order/direction to the respondents restraining the respondents from recovering and/or adjusting the amount(s) admittedly due to the petitioner from other contracts awarded by the respondents to the petitioner;
(b) Interim direction/order restraining the respondents from invoking the Bank guarantee amounting to Rs. 8,68,318/- issued by State Bank of Patiala, Karsog bearing No. 00AA162957, dated 27.5.1999 furnished by the petitioner after the issuance of the letter of award.
Admittedly, the work relating to ''construction of Mahog to Gawalpur road (+500)(L-093) KM 10/500 to 19/0 (SH:F/C 5/7 mtr. Wide road, C/D works, Prov. Essential Kharanja soling, Km stone, 200 Mtrs RD stone and tongo sign board) under PMGSY/BHARAT NIRMAN YOJNA (Package No. HP-08-117)'' was awarded by the respondents in favour of the petitioner. The cost of the work was Rs. 73,37,127/-. The work was to be completed within 12 months. Admittedly, the petitioner had already executed approximately 30% of the work. However, the construction work of the road was stopped by the Forest Department for want of requisite clearance. It is the case of the respondents that the matter with regard to grant of forest clearance is in process.
Against the above backdrop, the petitioner has filed the present petition for grant of interim measures, as above. According to the respondents they are ''only recovering the mobilization advance and machinery advance to the tune of 15% of the bank guarantee and there is no intention to impose liquidated damages on him''.
Thus, it is manifest that further construction work of the road is held-up due to there being no forest clearance from the concerned authorities for which the petitioner cannot be held liable and rather it is upon the respondents to obtain such clearance. It being so, to my mind, there is no occasion for the respondents to recover the mobilization advance and machinery advance to the tune of 15% of the bank guarantee furnished by the petitioner in the sum of Rs. 8,66,318/-.
In view of the above, the petition is allowed with a direction to the respondents not to invoke the bank guarantee furnished by the petitioner or to recover or adjust the same or any part thereof from the amounts, if any, payable to him in respect of other contracts awarded in his favour by the respondents. Needless to say that this direction shall be operative till completion of the work after the requisite forest clearance is obtained by the respondents or otherwise in accordance with law. The petition, so also pending OMP(s), if any, stand disposed of in the above terms.